March chain store sales start strong

Press Release:

NEW YORK, March 8, 2011 – March came in like a lion for retailers as weekly retail sales rose sharply over the prior week and turned positive.

Overall, for the week ending March 5, weekly retail sales rose by 2.3 percent, according to the ICSC-Goldman Sachs Weekly Chain Store Sales Index.

This was the highest reading since January 1, 2011. However, on a year-over-year basis, retail sales remained positive but slowed to 2.6 percent.

“Despite the consumers’ worry about higher fuel prices, which will likely weigh on the month’s overall sales, March came in like a lion for retailers this past week,” said Michael Niemira, ICSC vice president of research and chief economist.

“The offset is coming from an increase in employment and stronger income on the consumer front which is aiding in the overall uptick in retail sales,” Niemira added.

For March, ICSC Research expects comparable-store sales will be flat to up to 2.0 percent as the Easter shift (April 4, 2010 verse April 24, 2011) will cause a “big drag” on sales despite the widespread improvements in labor markets, economic conditions and the reduction in the payroll tax--which collectively are more than offsetting the potentially negative drag from high fuel and rising food prices on the consumers’ market basket.